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| Author: | Rauch, J. E. Watson, J. |
| Title: | Starting small in an unfamiliar environment |
| Journal: | International Journal of Industrial Organization
2003 : SEP, VOL. 21:7, p. 1021-1042 |
| Index terms: | Technology transfer Uncertainty Developed economies Developing countries |
| Language: | eng |
| Abstract: | The authors design a simple model of a developed country buyer's search for a less developed country supplier and the subsequent relationship between the two parties. They show that the propensity for the buyer to start small increases with the cost of search for a new supplier and decreases with the probability that the current or new supplier can fulfill the large order successfully after training. |
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